by The fashion and e-commerce retail sector is outperforming 2024 projections, creating significant opportunities for retailers for the rest of the year. In the United States alone, revenue from online sales of fashion and clothing, footwear and accessories is expected to exceed $145 billion. Apparel and accessories dominate the US e-commerce market, representing more than 19 percent of total retail e-commerce sales. This market is projected to expand at a compound annual growth rate of 9.4 percent, reaching more than $1 billion by the end of 2027.
Such impressive figures are backed up by the latest customer data from BigCommerce’s 2024 Global E-Commerce Report: Fashion and Apparel, which shows a global increase in gross merchandise value (GMV) of 10.7 percent, driven by a 7.2 percent rise in orders. In addition, the average order value worldwide increased by 3.23 percent, from $160 in the first quarter of 2023 to $165 in the first quarter of 2024.
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Also of note in the report is the significant growth of the fashion sector in EMEA and APAC. EMEA saw a 25.6 percent increase in GMV along with a strong 41.3 percent increase in order volume, while APAC saw an equally impressive 24.6 percent increase in GMV driven by a 24.3 percent increase in order volume.
Seizing the Moment With the Top Four E-Commerce Fashion Trends
With customers exceeding purchase projections, there has never been a better time for fashion retailers to reevaluate and improve their e-commerce strategies. Here are the top four trends, all focused on creating a customer-centric experience:
1. Implementing a Seamless Checkout Experience
Minimizing checkout friction is key to maximizing conversions. By simplifying and speeding up the checkout steps, businesses can reduce cart abandonment rates and create a more engaging shopping experience for their customers. In fact, Cornell University research shows that customers who use one-click checkout services increase their spending by an average of 28.5 percent.
For brands and online retailers, revenue growth is dependent on two critical conversion points – checkout conversion rate and visit conversion rate – and offering other payment options such as PayPal Wallet, ApplePay or Stripe. A recent independent study from Incisiv showed that customers using BigCommerce’s native one-page checkout and PayPal Wallet or Apple Pay yielded a 58.9 percent conversion rate compared to 52.9 percent without. Since the release of the report, the e-commerce platform’s flagship checkout visit conversion rate has increased from 2.33 percent to 2.67 percent, continuing to perform well above the industry average conversion rate of 1.94 percent.
Take BigCommerce customer Rohan, a UK-based outdoor and travel clothing brand for example. Rohan has significantly improved its checkout experience through its partnership with leading payment provider Stripe. Rohan’s online customer traffic increased by 6.5 percent in two months as a result of Stripe’s optimized skip suite, which includes the embedded Payment Element that supports more than 40 payment methods, and Stripe Radar for fraud detection.
Every touch point of the checkout process is evolving with new efficiencies, and fashion retailers should continue to incorporate these advancements to take advantage of the current market upswing.
2. Improving the Post-Purchase Experience
Consumers now expect a better post-purchase experience, including fast shipping, detailed delivery updates and simple return policies. In fact, two of the main reasons for cart abandonment among online shoppers are expensive shopping costs and long delivery times.
By implementing services such as buy online, pick up in store (BOPIS) and buy online, return in store (BORIS), brands can significantly enhance the customer experience, reduce cart abandonment due to costs high shipping and creating opportunities for upselling or cross-selling when customers visit a physical store. With most shoppers aware of BOPIS, the model is only expected to grow, as shown by the 19.4 percent increase in US BOPIS retail sales in March 2024.
Leveraging BigCommerce agency partner Rusty Monkey, Rohan launched a custom BOPIS integration tailored to his one-click checkout experience. Customers can easily navigate the BOPIS process using a store locator map that shows the closest stores based on zip code or city, along with store details, directions, contact information and hours of operation. In addition, the delivery information page clearly outlines each step of the collection process, including pricing and typical waiting times providing a level of transparency and universal ease that shoppers need.
3. Leveraging AI for Enhanced Personalization
AI and machine learning are essential tools for delivering personalized shopping experiences. Studies show that 92 percent of companies use AI-based personalization to drive growth, and 56 percent of consumers are more likely to be repeat buyers when offered personalized shopping experiences.
Brands can use AI to offer personalized product recommendations and pricing, which can accelerate purchasing decisions. For example, BigCommerce’s BigAI Copywriter leverages big AI generation modeling language to draft effective SEO optimized product descriptions to attract and convert shoppers into loyal customers. When a brand is in front of the right customers, companies like RecCommerce, a BigCommerce technology partner, can generate personalized up-sell and cross-sell opportunities based on customer preferences.
In the fashion industry, where individual style and fit options are key, leveraging AI for personalization is essential especially to meet customer expectations and drive brand loyalty.
4. Creating a Unified Omnichannel Experience
Shopping habits are changing dramatically, and customers often look at the same product across multiple channels – in-store, on third-party marketplaces, on brand websites and through social media – before making a purchase decision. A study by Capital One showed that not only are 73 percent of consumers omnichannel shoppers, but that retailers who use three or more channels have 251 percent higher engagement than those who use just one.
For fashion retailers, prioritizing a unified omnichannel experience is critical. This strategy involves meeting customers where they are, such as marketplaces, social media and physical stores, enhancing the overall shopping experience and driving higher engagement.
If managing multiple channels feels overwhelming, product lifecycle management tools like Feedonomics, a BigCommerce subsidiary, can help fashion brands and retailers by synchronizing product and catalog data across hundreds of channels, saving time and increasing discovery.
Some retailers are taking it a step further by implementing creative omnichannel-centric tactics, such as experiential loyalty programs, to boost customer engagement. According to Statista, not only are customers already attracted to loyalty programs, but a staggering 50 percent of US shoppers surveyed said they were likely to increase their participation in such programs.
Francesca’s, a boutique clothing chain with more than 400 stores, demonstrates innovative ways to connect customers to its brand. Its popular loyalty program FranClub bridges the omnichannel gap by offering digital assets and hosting in-person events for members, strengthening connections and boosting sales.
With sales exceeding expectations, fashion brands and retailers are in an ideal position to take advantage of the current market momentum. By ensuring an accelerated checkout process, improving the post-purchase experience, leveraging AI for personalization and creating a unified omnichannel experience, brands and retailers in this sector can position themselves for sustained success.
Meghan Stabler is Senior Vice President of Marketing at BigCommerce.
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